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After the Rana Plaza factory collapse tragedy, during which more than 1,100 people died, there have been calls for companies to pull out of Bangladesh. Disney already decided to stop sourcing its clothes and toys from Bangladesh due to the high risks. The EU also threatened to introduce punitive trade measures against Bangladesh.

An unsustainable response

Currently Bangladesh receives duty-free access to the EU market, as one of the world's poorest nations. Almost 60% of Bangladesh's garments go to the EU, so trade action would be likely to plunge many workers into unemployment and deeper poverty. About 3.6 million people are employed in the garment sector, which is vital for the economy – an estimated 80% of whom are women, many with families to support.

When companies pull out after a major disaster, they are punishing workers twice, firstly with the lack of monitoring and standards, and secondly by taking away jobs. A more sustainable response would be for companies to genuinely work at improving working standards which are enforced properly through government. Companies have both the responsibility and the power to do this. Plans recently announced by some retailers for a safety accord are welcome – and more companies must sign up for this to have a meaningful impact.

During recent research in Bangladesh, I talked to a group of agricultural labourers. Asking them about the major issues they faced, many cited lack of work. Discussing solutions, many of the women said they dreamed of learning to sew and working in garments. While these rural women may have unrealistic expectations about garment work, it was poignant that they thought it could bring them a better life.

Environmental migrants

Urbanisation is occurring in Bangladesh, flooding cities with cheap workers. Workers do not have bargaining power to push for better wages or conditions, and are not permitted to form trade unions.

When I interviewed women in slums in Khulna City, many said they were forced to move to the city because they lost their house or land to cyclones or saline water. With population growth, and increasing water problems due to climate change, this could be a growing problem – environmental migrants move to cities desperately seeking work.

It is possible and ethical for companies to take positive steps and then disclose this to consumers. There is also need for better enforcement of Bangladesh's existing labour legislation, as well as providing workers with legal access for adjudication of disputes. Although consumers might have to pay a bit more for their clothes, so improvements can be made.

The tragedy also shows the role of responsible consumerism and fair trade. If clothes are cheap, we know there may be hidden environmental and social costs.

Pulling out of poverty

Despite ongoing poverty, there has been significant progress in Bangladesh in recent years. In fact, the UN estimates Bangladesh is on track to meet the Millennium Development Goal to eradicate extreme poverty by 2015. While about 30% of the population are still below the poverty line, back in 1990 this was 56%. In urban areas, employment has been spurred by rapid growth in garments.

Although standards are still low, working in garments has been linked to reducing social exclusion for women and providing women with economic independence. However, workers' calls for improvements in working standards have often been crushed.

In most cases, employers are in violation of international labour standards. Garment workers should be provided with formal contracts. At Rana Plaza, workers were reportedly afraid to enter the building that fateful morning, seeing the cracks, but they were forced into work out of fear of losing their jobs. If they had fair contracts, this would never have happened.

A truly sustainable solution is not for companies to move out, or for EU to impose trade restrictions, but for those companies to start working with government to urgently improve standards. Improving working conditions and safety measures can also be good for business. As research from the International Labour Organisation shows, improving working conditions improves productivity.

The recently announced safety accord is a welcome move. Let us hope the recovery from this tragedy can be galvanised to implement lasting and meaningful improvements.